There are many factors involved in his logic, but one is that policy stances from the Federal Reserve and Federal government likely will inhibit growth.

"My expectation is we start making lower long-term highs toward 1,363 (on the S&P 500 ) as people come to realize this is a policy to inflate , which will, in turn, slow the economic growth I was getting bullish about."

Another element of his thesis involves near-zero interest rates and bank accounts. McCullough says the extended period of low rates equates to a tax on the consumer. Lost interest income means less money to spend.